Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1887-04-15
Western Loans,
the Editor of the Free Pre-, s.

To the Editor of the Free Pross.
Your correspondent subjected himself
to considerable private lombard ment
from loan agencies and agents on account
OF recent letter on Western loans. One
correspondent speaking of "Fairfay,su
communication and for one OF the agen
cles, says 1.-The letter seems TO he a
public announcement of his ignorance in
the matter" So far as concerns the mar
sonal qualifications of the writer it NAV
be well to drop the discussion I claim
To have fair grounds for basinp a iud0-
lneht, ana am not disposed to question
the integrity of many who are selling
these mortgage bonds. That money is
where principal and interest are promntIv
paid 1t Is foolish to deny. But it is nv
opinion, based upon considerable exr..T.
fence IN western life, that more thai
majority of these loan schemes
likely TO result dlsastrOusly in the
There are reasons for this assumnt
First, Il great deal of money is placed
real estate, at the boom price. and
understand what that means \ railr
~ coming, new town to develop in
IhlcaSo, any quantity Uf wonder
Things to happen that send real estate
beyond its natural level It is nor dlnid
10 see now money placed on such pstimf
Is llaple 10 peril ! get from first ha
the statement that in one instance mo
was being loaned on farms rated at $50
acre, SeUlhg value, when at that time
of thee farms had been sold for sl9
another had been offered for Sl3 per AZ
30 long as money is flowing into the WI
seeking borrowers, it is not difficult I'D
man, practically bankrupt to keep ano
Dut let Things turn the other way and
squeeze VIII throw upon the lend
thousands of acres of land that cost m
than 1t Will sell for. Loan agencies u
iufnlsh statements and athhHVlts mi
ny borrowers that carry on their face
absolute guarantee against loss The b
rover Is not going to make his appear
worse side. When John Law was flO
ing ms South Sea Island scheme. he
urea an enormous profit to every body
ued'i certainty. Figures wont lie"
parties can lie teartully with them.
second, legitimate farming East or We
cannot stand 5 to II per cent interest II
merely question OF time when the b
rover stops meeting his Obligated
Every farmer knows this So long AS
Interest Is kept up things 90 smooth
W hen that stops and foreclosures co
inence are the loan agencies going to cal
the land, or Will the Eastern holder fl
a Kansas, Iowa or Dakota farm on
hands
In this connection see how the Ne
Ehgtdhd HOnlGStcdd of April 9 speaks q
TINS matter edltorially:
ne western loan agencies, which ad-
Vertlse Tor Eastern capital to be placed
where 1t will return the lender to II per
cent net are Killing agricultural thrift in
the sections where they exist, and Eas tern
lenders are beginning to whistle for their
capital or lind unremunerative property
on their hands in the far West, procured
by foreclosure of these mortgages Yet
many OF our readers know the difficulty
there is in raising a reasonable sum Of
money upon the security of our New
England farms. Is there not less risk in
the capital loaned on farm mortgages
here than in the West We are inclined
TO- the opinion That some one is going to be
bitten by these Western loans in the near
future. But the public wont hear much of
such Il result, because the losers will keep
still. We have paid two and one-half per
ceut month for money in Colorado and
Know something about this business"
FAIRFAX.